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Market Outlook: China’s Huawei blacklisted

By the Trump administration
May 16, 2019

Reuters reports that the giant telecoms company, under scrutiny for its government links and international 5G proposals, has been hit by severe US sanctions – just as Sino-Chinese trade talks were due to resume. The move means that the Chinese company is banned from acquiring components firms and technology know-how from US firms unless it has US government approval.

In a report compiled by Bloomberg, it would seem that global trade has slumped this year, particularly in the manufacturing sector. Backed up by IMF data, exports have dropped to their lowest levels since 2009.

DAX 30

Despite yesterday’s clamber back above the neckline of the huge head and shoulders top at 12000, momentum remains negative. A busy electoral timetable next week, and in June in the UK, means a sort of go-stop mentality will probably predominate.

 

SHORT TERM TRADER: Short at 11840; stop12200. Target 10750.

 

POSITION TAKER:  Short at 12110; stop above 12285. Target 11000.

FTSE 100

Bouncing from Fibonacci 38 per cent retracement support, though momentum remains bearish.

 

SHORT TERM TRADER:   Short at 7245; stop above 7300. Target 7020.

 

POSITION TAKER:  Short at 7275; stop above 7400. Target 6875.

S&P 500

A little bounce changes little.

 

SHORT TERM TRADER:  Short at 2880; stop above 2960. Target

 

POSITION TAKER:   Square.

 

BRITISH POUND/US DOLLAR

Probing the lower reaches of this year’s range as looming elections cast a nasty shadow on all major parties.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

A dragonfly doji yesterday hints that this market just might be looking for direction.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

GOLD

Consolidating just under the psychological 1300 with little to be said for this market.

                            

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

Nicole Elliott is a long-standing member and Fellow of the Society of Technical Analysts and has taken over the IC’s trading coverage.  She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.